The leadership of the CFPB was in the hands of afederal court Monday, after the agency's deputy director filed suitchallenging President Trump's right to appoint an interimdirector.

Leandra English filed the suit contending that she, and notOffice of Management and Budget Director Mick Mulvaney should berunning the agency after CFPB Director Richard Cordray'sresignation Friday.

However, the White House Monday morning released a photo ofMulvaney in the director's office.

The confusion began Friday afternoon, when Cordray appointedEnglish deputy director and then resigned. He and English contendthat Dodd-Frank allowed the director to designate an actingdirector when the director is absent or unavailable.

However, the administration is arguing that the FederalVacancies Act gives the president the power to appoint an actingdirector in any agency until a permanent director is confirmed bythe Senate.

The Justice Department's Office of Legal Counsel released anopinion Saturday that bolsters the administration's argument.

Ironically, Mary McLeod the CFPB's own general counsel supportsthat position. “I advise all Bureau personnel to act consistentlywith the understanding that Director Mulvaney is the ActingDirector of the CFPB,” she said in a memo to agency staff.

However, English's suit states, “The President's purported orintended appointment of defendant Mulvaney as Acting Director ofthe CFPB is unlawful. The President's use of the Federal VacanciesReform Act to appoint an Acting Director of the CFPB would be anobvious contravention of Congress's statutory scheme.”

She added that allowing Mulvaney to serve as acting directorwould undermine Congress's intent to ensure that the agency remainsindependent.

English's suit was filed by Deepak Gupta, a former seniorcounsel at the CFPB.

CUNA and NAFCU said they continue to support legislation thatwould convert the CFPB into a commission rather than an agency runby a single director. The House passed that proposal as part ofHouse Financial Services Chairman Jeb Hensarling's Financial CHOICEAct, but the Senate has not considered that plan.

“Director Cordray's final act illustrates so clearly why acommission overseeing CFPB would be superior to the single directormodel,” said CUNA President/CEO Jim Nussle. “With a commissionin place there would be no opportunity for a lame duck appointee toselect a non-Senate confirmed citizen to lead an agency with suchan unaccountable structure governing the entire financial servicesmarketplace.”

Members of Congress also have weighed in on the controversy,with Democrats supporting English and Republicans supportingMulvaney.

Trump eventually will nominate someone to serve as permanentdirector. However, since Trump has made it clear he opposes theCFPB, any nominee is likely to generate extended debate in theSenate.